Samsung isn’t the only supplier that Apple is trying to rely less upon these days. Unnamed sources tell The Wall Street Journal that Apple is expanding its roster of manufacturers so that it won’t have to depend so heavily on Foxconn parent company Hon Hai going forward. The Journal’s sources say that a combination of factors, including public relations headaches caused by Foxconn’s controversial labor practices and poor yields of the iPhone 5 last year, have led to rising tensions between the two companies. To ease its reliance on Foxconn, Apple will turn to Taiwanese manufacturer Wistron to help with iPhone 5c production and to Compal Communications to help with iPad mini production.
7-Eleven convenience stores may soon be good for more than crusty hot dogs and oversized sodas. The Wall Street Journal reports that 7-Eleven is teaming up with iPhone manufacturer Foxconn to sell some of Foxconn’s own television sets in 7-Elevens across Taiwan. What’s more, the Journal says that the two companies “may cooperate in making smartphones and tablets in the future,” which would certainly expand 7-Eleven’s market well beyond the realm of unhealthy snacks. Foxconn has been pushing recently to make its own smartphones and tablets comes as the company is trying to lessen its dependence on Apple and broaden its revenue sources. Foxconn unveiled its first Firefox-based tablet earlier this year and the company plans to produce at least four more Firefox devices by the end of the year.
We’re getting close to Apple’s next-generation iPhone 5S launch this fall and that means manufacturer Foxconn is going on a major hiring binge to fill Apple’s orders. Unnamed sources tell Focus Taiwan that Foxconn is hiring 90,000 new workers at its Shenzhen production facility to help the company fill “massive orders from Apple” that will include the iPhone 5S and the new budget iPhone. The iPhone 5S will reportedly feature an upgraded version of the A6 processor, improved graphics, 2GB of RAM and a 12-megapixel camera with a dual-LED flash while the budget iPhone has been rumored to feature a 4-inch display, a less powerful processor, 1GB of RAM and a plastic case that comes in multiple colors.
Foxconn is best known as the manufacturer of Apple’s assorted mobile devices, but the company is trying to expand its reach into new areas by manufacturing its own devices based on Mozilla’s Firefox operating system. The Wall Street Journal reports that Foxconn parent company Hon Hai is about to embark on its most adventurous scheme yet after it submitted “an application for a fourth-generation high-speed mobile spectrum license in Taiwan.” The Journal says that Hon Hai is trying to invest in more high-margin businesses because it has found that manufacturing electronics simply isn’t as profitable as it has been in years past.
It seems like we’ve been hearing rumors forever about Apple releasing its own “iWatch” that acts as a key accessory to the iPhone. But apparently, longtime Apple manufacturing partner Foxconn got tired of waiting around and decided to take matters into its own hands with its very own iOS-compatible smartwatch. CNET reports that Foxconn executives this week showed off a new watch “that can wirelessly connect to an iPhone to display incoming phone calls and Facebook posts.” The launch of the Foxconn watch comes at a time when the company has started trying to lessen its dependence on Apple by building its own consumer electronics products to boost its overall margins. No release date or pricing has been announced for the new Foxconn smartwatch at this point.
Mozilla’s Firefox OS looks like it’s about to a get a big boost in its quest to make a mark in the hugely competitive mobile industry. AllThingsD reports that manufacturing titan Foxconn “hopes to recruit up to 3,000 software engineers with chops in HTML 5 and cloud computing application programming in the months ahead” as it prepares to release more devices based on the free-to-use Firefox OS. Foxconn’s push to make its own smartphones and tablets comes as the company is trying to lessen its dependence on Apple and broaden its revenue sources. Foxconn unveiled its first Firefox-based tablet earlier this month and the company plans to produce at least four more Firefox devices by the end of the year.
Reports emerged on Monday suggesting consumer electronics manufacturing giant Foxconn intended to build and launch its own devices as Apple’s growth begins to slow. Now, Reuters follows the report with details on what may be Foxconn parent company Hon Hai’s first new mobile device to launch as part of this effort. Reuters was only able to confirm with its unnamed sources that Hon Hai and Mozilla plan to team up to unveil a device running Firefox OS on June 3rd, but a separate report from Focus Taiwan suggests the device in question will in fact be the first tablet powered by Mozilla’s mobile operating system. No other details about the device are known at this time.
While it’s too soon to tell whether Foxconn will try to become the next Samsung, the company is certainly looking to diversify its product portfolio in order to lessen its dependence on Apple. Unnamed sources tell The Wall Street Journal that Foxconn “is moving aggressively to add new clients and is looking at ways to diversify beyond contract manufacturing,” including “reviewing plans to sell its own brand of electronics accessories to improve profit margins.” It’s unclear from the Journal’s report whether these Foxconn-branded devices would compete directly with Apple’s devices, although an earlier report indicated that Foxconn was mostly interested in producing its own television sets rather than smartphones or tablets.
See if this scenario sounds familiar: A longtime Apple manufacturing partner looks to move away from its dependence on the company and focus more on creating its own products that it can sell at higher margins. While this has certainly been the story of Samsung’s success over the past couple of years, a new report from The New York Times suggests that iPhone manufacturer Foxconn may be drawing up a similar path for itself by designing and manufacturing its own brand of televisions while also inching itself away from depending on Apple as its major source of income. More →
Apple has made plenty of headlines over its reported supply chain woes this year and now The Register has translated a new report from China Business claiming that Apple recently returned at least 5 million iPhones to Foxconn this year due to some kind of unnamed defect. The Register notes that “with a cost to manufacture of $US200 apiece, Foxconn is apparently preparing to take a hit of up to $1.6bn to cover the cost of making replacement handsets,” which would certainly be a major blow to the world’s leading smartphone manufacturer. The report of the returned iPhones comes after Foxconn earlier this month posted a 19% drop in year-over-year revenue that was attributable in large part to “disappointing” recent iPhone sales.
Just because the iPhone is still the world’s best-selling smartphone, that doesn’t mean its sales can’t be disappointing relative to expectations. Reuters reports that iPhone manufacturer Hon Hai, which trades publicly as Foxconn, reported a 19% decline in revenue compared to a year ago. What’s more, Reuters says that the decline is due primarily to “disappointing” iPhone sales over the past quarter and notes that revenue from building iPhones and iPads typically account for at least 60% of Foxconn’s sales. Recent estimates have suggested that Apple’s (AAPL) iPhone 5 has been selling below expectations but that the company is still in line to meet or exceed overall iPhone sales targets due to the continued strong demand for iPhone 4 and 4S models.
Hon Hai and its manufacturing subsidiary Foxconn are the subject of a bribery probe in China, the company confirmed on Wednesday. According to a statement given to The Wall Street Journal, authorities in China are investigating the alleged bribery of supply chain companies by Foxconn employees. “We are working with law-enforcement officials who we brought in to work with our own internal audit team as part of an investigation into allegations against a number of Foxconn employees related to illegal payments from supply-chain partners,” Hon Hai said in its statement. “We are also carrying out a full review of our policies and practices to identify steps we can take to strengthen such measures to further mitigate against such actions.” It is unclear how many Foxconn employees are involved in the alleged scheme. Foxconn is the world’s largest original device manufacturer, and it known most famously for building iPhones and iPads for Apple (AAPL).
It has been nearly a year since Apple (AAPL) CEO Tim Cook addressed the unsafe working conditions in the company’s supply chain factories. Following an investigation from the Fair Labor Association that found a number of Chinese labor law violations, Apple and Foxconn (2038) agreed to improve conditions. The companies planned a series of reforms, including reduced hours and significantly higher wages. Foxconn said that the majority of changes would go into effect by July 2013, however according to a report from The New York Times, some workers have already noticed some smaller changes taking place such as cushioned chairs replacing old wooden stools. More →